Buyer‐subcontractor relationships in the Italian clothing industry

Abstract

Examines, through an empirical survey, the nature of the relationships between buyer and subcontractor firms in the clothing industry in Italy. Starting from the identification of three classes of buyer firms (characterized by the different ways in which they relate to the market), develops an interpretive framework of firms’ strategies in managing subcontractor relationships. Shows that the buyer‐subcontractor relationship is undergoing a drastic evolution with the strategic importance of an “extended integrated production system” being recognized. Discusses how this ongoing evolutionary process is involving firms in different ways: the shift to an evolved buyer‐supplier relationship (characterized by a logic of integration/co‐operation), seems to concern only one of three classes of firm defined.